Showing questions for August 13, 2025
- Total: 38 questions
Question 26 Aug 13, 2025
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What is a major misconception among Indian retail investors regarding mutual funds, as highlighted in the article?
Mutual funds are completely safe and cannot lose valueMany retail investors believe mutual funds are entirely safe due to AMFI campaigns that contrast them with volatile stocks. However, the article clarifies that MF values can fluctuate significantly, just like stocks, and investors can incur substantial losses, especially during market downturns like the Covid crash. The belief in guaranteed safety leads to poor risk assessment and emotional decision-making. Investors often exit during bear markets and re-enter during bull runs, undermining the long-term benefits of disciplined investing. This misconception highlights the need for better financial education.
Question 27 Aug 13, 2025
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What key point did Finance Minister Nirmala Sitharaman emphasize about the 100% FDI increase in the insurance sector announced in the 2025 Union Budget?
It will bring more players, generate jobs, and reduce costs through improved technologyFinance Minister Nirmala Sitharaman stated that raising the FDI limit to 100% in insurance companies would attract more global players, create employment opportunities, and enhance efficiency. She highlighted that improved technology and automation would streamline underwriting and claims processing, reducing costs and turnaround time. The move is expected to boost competition and innovation in the sector. Regulatory safeguards, including solvency norms and domestic investment mandates, remain in place to protect policyholders. This reform aligns with broader economic liberalization goals.
Question 28 Aug 13, 2025
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What behavioral pattern among retail investors is revealed by Prime Database’s analysis of Q1 2025 stock transactions?
Retail investors sold stocks that later rose significantly in valuePrime Database found that retail investors sold shares worth over Rs 14,000 crore in April–June 2025, just before those stocks surged between 18% and over 50%. For example, investors sold Reliance Industries shares worth Rs 6,000 crore while the stock rose 18%. On average, the 967 stocks sold by retail investors appreciated by 24% in the same quarter. This reflects a common psychological bias—selling early due to fear of loss and missing out on gains. The pattern is global and driven by emotions like fear and greed, not unique to Indian investors.
Question 29 Aug 13, 2025
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Which river in Paris has recently opened public bathing sites, attracting thousands of swimmers amid a heatwave?
SeineThe Seine River in Paris has recently opened three public bathing sites, marking a significant environmental and urban development. This initiative allows both tourists and Parisians to swim in the river, which was previously unsuitable for swimming due to pollution. The reopening comes after years of cleanup efforts by the city to improve water quality. With a heatwave hitting the region and temperatures reaching up to 38°C, the sites have become increasingly popular. The French weather service, Meteo France, has placed Paris under 'high vigilance' due to the extreme heat, further increasing public interest in river swimming.
Question 30 Aug 13, 2025
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What innovative method are farmers in Kenya's Taita Hills using to deter elephants from raiding their crops?
BeesFarmers in the Taita Hills of southern Kenya are using bees as a natural and effective way to keep elephants away from their fields. Elephants, despite their size, are highly sensitive to bee stings, especially around their trunks and eyes, making them avoid areas where beehives are present. This eco-friendly method involves placing beehives around crop fields to create a protective barrier. It reduces human-elephant conflict without harming the animals. The strategy supports conservation while protecting livelihoods, especially after incidents like the tragic death of a 3-year-old girl trampled by an elephant in Taita Taveta.